Why get rich quick business models suck.

My morning coffee inspired today’s topic, so lets get into it. When you set out to evaluate your competition it’s hard not to be drawn to the people/businesses that are doing it so wrong. “I got rich by these 3 simple steps. Download my ebook for $$”. If making money was easy, everyone would be rich! Simple? It is hard work. ‘Work’ being the key word.

As an investor you need to be grounded in reality and understand that realising the full potential of an investment will take time. Some don’t, most do.

The consultants at Hometree often talk to me about how impatient their new clients are. Some are concerned because they have started taking investing seriously later in life, now they are looking for the quick and easy road to financial success. Unfortunately, there are businesses out there that advertise directly to these people and regularly win them as a client with these tactics. Being realistic with your financial goals should be a priority for all people looking to get ahead.

Now this article was never written with the intention of being negative towards success. If you have an idea for a business or an app to create money, power to you. Creating an investment plan with what you have available to you right now is where people lose focus. Creating a foundation for success is important. It might be boring and lacklustre but it frees you up mentally from financial strain to chase different opportunities, à la an app or business idea.

So, next time you see someone offering something you consider “too good to be true” you’re probably right. Seek professional advice around your specific needs and don’t be afraid to question it or get a second opinion. Good professionals will welcome this, as the old saying goes. The cream always rises to the top.

The terms ‘positive’ and ‘negative gearing’ have been the topic of the country for the last few weeks and will continue to be leading into the election in early July. The effects of these strategies on our economy are being hotly debated right now and the average Australians who use these strategies on a day to day basis are eagerly awaiting clarification on the policy.

So what is the fuss about? Well let’s quickly recap the different types of gearing.

It’s the age-old question - Do you buy an established or brand new property for investment purposes? There are always pros and cons to both but in this blog we will outline the benefits to buying new vs. buying established.

We have whittled it down to three of the biggest factors to consider when buying your next investment property. Its important to note there are more then these three but these points hold the greatest influence.

Nearly every week in the news there is a story on buying your first home. TV segments and articles with headlines like “It’s impossible for Gen Y to afford to buy their own home and always will be” or “Stop your whining, I have bought a property! Let me tell you how.”

So what is the real story behind these bulletins?

The reality is buying your first home won’t be easy, as the first major hurdle is saving the deposit.

When it comes to investing in property, choosing your location is always first on the agenda. Highlighting the key drivers of the region are critical to the long-term success of the property and spending the time doing the research will pay dividends.

Where do you start?

When looking for a strong candidate always keep an eye on the following:

Contact Us

Hometree is a group of companies based on the Sunshine Coast in Queensland, Australia. We facilitate high quality advice and strategic guidance for entry level and experienced investors, Australia-wide.
All the information and numbers stated on the Hometree website are not to be considered for actual financial planning, finance or property advice. They are simply used for example purposes only. Please contact us if you would like some personalised advice for your own financial situation.